Developments in financial markets can have broad economic effects felt by many outside the markets.

I don't fully understand movements in the gold price.

The more important reason is that the research itself provides an important long-run perspective on the issues that we face on a day-to-day basis.

With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.

We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s going to drive the economy too far from its full employment path, though.

We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.

If I am confirmed, I am confident that my colleagues on the Federal Open Market Committee and I will maintain the focus on long-term price stability as monetary policy's greatest contribution to general economic prosperity and maximum employment.